Thursday, February 23, 2006

Booming

The average income of American families, after adjusting for
inflation, declined by 2.3 percent in 2004 compared to 2001 while their
net worth rose but at a slower pace.

The Federal Reserve reported Thursday that the drop in
inflation-adjusted incomes left the average family income at $70,700 in
2004. The median, or point where half the families earned more and half
less, did rise slightly in 2004 after adjusting for inflation to
$43,200, up 1.6 percent from the 2001 level.

I just thought I would point out the little discrepancy between the average ($70,700) and the median ($43,200). A little math refresher: the average is impacted by outliers whereas the median is not. So those making more than the median are driving up the average. Yup, the rich are getting richer. The not-so-rich, outta luck.